In an effort to safeguard the profits of digital artists in nft markets and boost Metaverse initiatives, the ‘Open Metaverse Alliance’ (oma3), led notably by Animoca Brands CEO Rob Yung and UpLand co-CEO Dirk Lueth, has created an important working group.
The collaborative team is made up of several leading blockchain, nft, and Metaverse companies, including Yuga Labs, Magic Eden, Alien Worlds, The Sandbox, and Decentraland of Bored Ape Yacht Club fame.
Together, these Web3 powerhouses have a joint mission to triumph over the current dilemmas surrounding nft and Metaverse. One of its main goals includes creating international standards for nft marketplaces that member companies agree to maintain in an attempt to restore the original creators’ shares in full force.
Announcement of OMA3’s defense of royalties from nft creators, including support from @MagiaEden, @yugalabs, @animocabrands, and the rest of our fantastic membership. We welcome #NFTCommunity to join OMA3 and reinforce our efforts. @decryptmedia: https://t.co/pOyQJ81pOp
-OMA3 (@oma3dao) October 17, 2023
Persistent Creator Royalty Challenges
Creator royalties, initially designed to benefit the original artists of digital artworks by collecting them on secondary sales of NFTs, typically range between 2.5% and 10%. However, these payments have faced increasing challenges.
Numerous nft marketplaces have stopped the practice of charging fees to creators, some of whom entice users by offering gamified financial incentives instead. The effectiveness of this playful approach quickly became evident, and as a result, Blur overtook OpenSea as the largest nft platform by trading volume.
In a surprising turn of events, OpenSea, regardless of previous claims, revealed in August that it would no longer impose such fees on creators. In response to the market decision, several The biggest nft brands took action. One of them was Yuga Labs, which revealed that it no longer sells its virtual assets on the platform – a huge loss for OpenSea, considering that together, Yuga collectibles have generated more than $9 billion in trading volume.
Safeguarding the vision of the metaverse
OMA3 participants believe that stopping the enforcement of creator royalties endangers not only the nft ecosystem but also the fundamental tenant of the Metaverse progression. NFTs help create a connected online landscape whereby virtual assets can move freely between these platforms to reshape digital ownership.
According to Yung in a recent interview, many nft buyers today care about short-term financial gains rather than long-term well-being. So this is where OMA3 comes in, attempting to protect creators’ royalty payments as a means of safeguarding what he describes as the Metaverse as a “utopian world.”
With a mission to overcome these current challenges, the alliance’s efforts demonstrate a commitment to maintaining the credibility of the nft landscape and the broader vision of the Metaverse. “It’s time for creators to be in control of their assets, not platform owners,” says the website OMA3, which promotes innovation and inclusion driven by decentralization.
The Open Metaverse Alliance is a guiding light for both nft and Metaverse creators and Web3 enthusiasts, driven to safely and fairly build a more prosperous and equitable virtual world.
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*All financial/investment opinions expressed by nft Plazas come from the personal research and experience of our site moderators and are intended to be educational material only. People should thoroughly research any product before making any type of investment.
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